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Novo Nordisk lays off 400 staff in research & development unit

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Novo Nordisk lays off 400 staff in research & development unit
FILE PHOTO: The logo of Danish multinational pharmaceutical company Novo Nordisk is pictured on the facade of a production plant in Chartres, north-central France, April 21, 2016. REUTERS/Guillaume Souvant/Pool/File Photo   -   Copyright  POOL New(Reuters)
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COPENHAGEN (Reuters) – Novo Nordisk, the world’s top maker of diabetes drugs, said on Tuesday that it will lay off 400 staff in Denmark and China as part of a broader restructuring of its research and development organisation.

The firm, which employs more than 42,000 people in 79 countries, has seen growth slow due to pricing pressures in the United States, from where it sources about half its revenue.

The job cuts come as the company seeks to increase investment in biological and technical innovation both within its core therapy areas and new ones, it said in a statement.

Novo Nordisk said in May that new U.S. legislation aimed at reining in high drug prices would cut its 2019 sales by 1-2 percent.

It announced 1,000 job cuts in 2016 as competition among insulin producers increased and prices were squeezed by pharmacy benefit managers (PBMs) who administer drug programs for employers and health plans.

Shares in Novo Nordisk were trading 0.7 percent higher at 0850 GMT.

(Reporting by Jacob Gronholt-Pedersen; Editing by Kirsten Donovan)

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